INVESTMENTREVIEW INTERNATIONAL PRESS SELECTIONS April 2011 Foreign Investment Committee - Ahumada 11, 12th Floor, Santiago - Telephone: (562) 698 4254 - Fax: 698 9476 - www.foreigninvestment.cl If you want to be included in our mailing list in order to receive this publication via mail, please write to firstname.lastname@example.org
Matías Mori: "Overseas Mining Companies Are Increasingly Interested In Investing In Chile." Chile did not pass unnoticed at the recent Convention of the Prospectors and Developers Association of Canada (PDAC), the world's most important mining event. It was represented by a 91-strong public-private delegation led by Laurence Golborne, Chile's minister for mining and energy, and by Matías Mori, executive vice-president of the Foreign Investment Committee. They took with them one of the Phoenix capsules used in the rescue of the 33 miners trapped underground for over two months, which attracted a great deal of interest. The Chilean delegation also included Diego Hernández, executive president of Codelco, and Cristóbal Undurraga, executive director of the InnovaChile program of the Chilean Economic Development Agency (CORFO). As well as speaking along with Minister Golborne
at a seminar on mining opportunities in Chile, Matías Mori took the opportunity to meet potential investors, confirming the interest that Chile attracts as a place for investment in mining exploration and production. "Overseas mining companies are increasingly interested in investing in Chile," reported Mori, drawing attention to the presence of Canadian companies there. "When we talk about Canadian investment in Chile, we have to remember that Canada is its third largest foreign investor and, since 1974, has invested US$13,570 million, accounting for over 17.7% of foreign direct investment in Chile under the DL 600 Foreign Investment Statute. Moreover, out of that total, 65% was in mining," he added. Energy Mori also held meetings with Canadian businesspeople interested in other sectors. "It's interesting how potential Canadian investors are increasingly scouting other sectors such as, for example, energy," he noted. "In this context, we are working permanently with the Energy Ministry not only to be able to offer investors an updated portfolio of projects that will be put out to tender but also to produce documents and publications
It is important to note that the portfolio of projects for tender which the Foreign Investment Committee is promoting includes eolic projects and mechanisms of support for investment in Alternative Renewable Energies (AREs). During his visit to Canada, Matías Mori also met representatives of the Investment Division of Ontario's Ministry of Economic Development and Trade as part of a policy of cooperation between the Foreign Investment Committee and equivalent organizations in other countries. Foreign Investment Committee, March 10
America in the United States.
The executive vice-president of the Foreign Investment Committee, Matías Mori, was a panelist at the XIII Latin American Conference of Harvard Business School, held on March 26 in the United States. Mori, who was the only representative of Chile at the event, spoke in the panel on "Unlocking the Public Sector: Government's Role in Promoting Sustainable Business".
The topics discussed included the need to boost the role of the region's governments in attracting foreign investment, the challenges of achieving improvements in areas such as efficiency and the transfer of relevant information and the importance of reducing the time and costs required to do business in Latin American countries. Emphasis was also placed on the benefits of cooperating to capture the attention of foreign investors and seeking mechanisms for the joint promotion of the attractions of a particular geographical area.
The event in which the former president of Colombia, Álvaro Uribe, participated is one of the principal conferences about Latin
"In general, the analysis of panelists and attendees at the Harvard conference was very much in line with what our government is doing in the field
CHILEAN FOREIGN INVESTMENT MODEL ANALYZED AT HARVARD
about the general outlook for energy in Chile and opportunities for investment," he added.
Former president of Colombia, Álvaro Uribe, took time out to praise the economic management of Chile
of foreign direct investment," reported Mori. "I think Chile has grasped world trends very well and this allows us to look to the future with optimism because we are working in the right direction," he added. Foreign Investment Committee, March 28
ECONOMY CHILE ECONOMY EXPANDED FASTER-THAN-FORECAST 6.8% IN JANUARY FROM YEAR AGO Chile's economy expanded in January at the fastest pace since August as retail sales surged, supporting estimates. The Central Bank's monthly Imacec index, a proxy for gross domestic product, rose 6.8 percent from a year ago, the bank said on its website. Economists surveyed by Bloomberg forecast 5.9 percent growth, according to the median of 12 estimates. Chile's peso paced Latin American currency gains while interest-rate swap yields reached the highest in more than two years. South America's fifth-biggest economy expanded faster than forecast even as the Central Bank continues to lift lending costs, Flavio Magnasco, economist at Banco Falabella in Santiago, said. Data supports the idea that policy makers can raise borrowing cost without running the risk of halting economic expansion. Policy makers will raise the overnight rate from 3.50 percent to 3.75 percent on March 17 and to 5 percent by September, according to the median estimate of 42 traders and investors in a Feb. 23 Central Bank survey. Policy makers increased rates by a quarterpoint last month after pausing in January for the first time since May. The US$164 billion economy grew 5.2 percent last year, based on preliminary Central Bank data, as industrial production expanded 0.6 percent. Economic growth may reach 6.5 percent in 2011, which would be the fastest annual expansion in more than a decade, according to Central Bank estimates. 'Good Position' "The country as a whole is in an extremely good position," Central Bank President José De Gregorio said in a March 4 interview
with Bloomberg TV in Paris. "From the point of view of the central bank, what we have to do is to control inflation."
PIÑERA ASKS SPANISH BUSINESSMEN TO INVEST MORE IN CHILE
Chile's peso climbed to 473.85 per dollar from 474.05 on March 4. It has strengthened 1.1 percent in the past month.
Chilean President Sebastián Piñera in Madrid asked local businessmen to invest more in his country to strengthen the strategic alliance between the two nations.
The one-year interest-rate swap rate, which reflects traders' expectations for the average of future rates, increased 13 basis points, or 0.13 percentage point, to 5.12 percent, the highest in more than two years. Chile had a trade balance of US$1.17 billion in February as exports grew 25 percent from a year earlier to US$5.92 billion and imports expanded 33 percent to US$4.75 billion, the Central Bank said. Bloomberg, Mar 7
CHILE AND TURKEY FREE TRADE A G R E E M E N T TA K E S E F F E C T Xinhua reported that the Chile and Turkey Free Trade Agreement became effective with 98% of bilateral trade now tax free and the rest to follow suit within 6 years. It is Chile's 21st valid trade agreement described as a win win deal under which the South American country hopes to gain greater access to the vast markets of oil rich Middle East and Central Asia. Meanwhile, Turkey regards the agreement, its first FTA with a Western hemisphere country, as a way to explore the opportunities in the other side of the world. Under the pact signed on July 14th 2009, 92.6% of Chile's exports to Turkey or 26% of total Chilean exports will get tax benefits. Steel Guru, Mar 8
Piñera began a three-day state visit to Spain to deepen and strengthen political, economic and cultural ties between the countries. The Chilean president was received by Spanish Prime Minister José Luis Rodríguez Zapatero, and the two leaders later held a joint press conference to assess the "intense relations" between the two countries. They reviewed areas such as Chile's interest in alternative energy sources, transportation and infrastructure, in all of which they agreed to continue working together. Piñera thanked Zapatero for the help Spain provided to Chile a year ago after the devastating earthquake that struck the Andean nation. And Zapatero called Chile a "great country" that over the past year has known how to overcome adversity such as the magnitude8.8 temblor and the accident that trapped 33 miners for more than two months. "Chile displays before the world how Latin American countries can be in the vanguard of development and economic growth," he added. Despite the fact that Chile's economy grew by 6 percent in 2010, its president said that his country "will not let down its guard or rest on its laurels." In an informative meeting before an auditorium filled with top executives of large multinationals like Endesa, Sacyr and Telefónica, and later at a business conference, Piñera asked for "much more Spanish investment."
"Spain is the second-largest foreign investor in our country after the United States," noted the Chilean leader. Piñera said that "many challenges remain," and urged Spanish investors to commit themselves even more to his country, mentioning "great priorities" such as infrastructure, energy and water. On his agenda, Piñera also attended the inauguration of the Hispano-Chilean Business Conference, in which about 100 companies from the two countries participated. Spanish Economy Minister Elena Salgado said that she feels a "certain envy" for Chile's growth rate and urged Spain's companies to invest in the South American nation.
He also sees increased copper demand for electric cars and wind farms.
we had broken the mold with a stop in Elqui Valley.
Reuters, Mar 10
Beyond improving our reputations, the experience in Elqui Valley set the tone for our entire trip. The very first winery we visited was also the smallest: Cavas del Valle. An organic winery, Cavas del Valle produces all of their wines in a single room and ages them in a small cellar in the next door. Our 9 a.m. tour was quick, but included some really interesting wines. Unfortunately they don't export to the US, but their Syrah Gran Reserva and Cosecha Otoñal, a late harvest wine made with pink muscatel grapes, are almost worth the trip to Chile on their own.
CHILE ANALYSTS SEE 1Q GDP +8.1% ON YEAR -CENTRAL BANK POLL Analysts expect Chile's gross domestic product to grow 8.1% in the first quarter from a year earlier, according to the median forecast of 40 local analysts in the Central Bank's monthly economic outlook survey. For 2011, they expect GDP to grow 6.0%, the midpoint of the central bank's 5.5%6.5% outlook. Dow Jones Newswire, Mar 10
EFE, Mar 9 WINE ADVENTURES IN CHILE CHILE'S CODELCO SEES COPPER TIGHT, PRICES STRONG Global copper supply will remain tight and underpin prices, which will remain at strong levels in the medium to long term, Codelco Chief Executive Diego Hernández said. "The market is pretty tight, and as a result prices have remained high, higher than we expected," Hernández, head of the world's No. 1 copper producer. "We are optimistic in the medium and longer term," he added. "Prices should maintain at good levels." Hernández had said the supply-demand balance for copper would remain tight through 2011 and likely into 2012, though he saw possible volatility due to Chinese efforts to control inflation. Hernández said he saw potential future demand in the hundreds of thousands of tonnes for applications of copper in hospitals due to its antibacterial qualities.
By Matt Browner Wine tourism in Chile is, as the concept suggests, about two things: wine and tourism. While there's no shortage of phenomenal Chilean wines waiting to be discovered, my recent tour of Chilean wineries was a success not because of the standout bottles of wine I sampled, but my holistic experience of visiting Chile to explore their wine regions. I wanted to share my favorite experiences from my tour of Chile, particularly my memories of drinking, eating and relaxing in some of the nicest places I've ever visited. My girlfriend Lori and I flew into Santiago, but immediately transferred to La Serena, three hundred miles north. After a slight problem with our luggage, we went east from La Serena, towards the Andes and the Elqui Valley. While Elqui has been a producer of grapes used in pisco for a long time, it's a relatively new front in Chilean wine making. Going to Elqui Valley was a great decision people in the valley were surprised that American wine tourists had thought to come so far beyond the traditional valleys and people everywhere else were impressed that
The real reason I wanted to go Elqui Valley, though, wasn't wineries like Cavas del Valle or Falernia. No, the real reason was I wanted to see some stars. No, I don't mean Chilean poet Gabriela Mistral, though we did visit her museum in Vicuña. I mean the incredible night sky. The Elqui Valley's elevation and lack of light pollution make it one of the best spots on the globe to see constellations. In fact, some of the most important research telescopes in the world line the ridges of the Elqui Valley. We visited Mamalluca Observatory, which is geared for tourists, and got to see the wonder of our universe first hand. To take further advantage of the beautiful night sky, while we were in the valley we stayed at a hotel, Elqui Domos, whose unique geodesic domes opened in the top and allowed us to view the night sky from the warmth of our bed. My favorite winery tour came the day we left the Elqui Valley, flew back to Santiago, and drove north again to the Aconcagua Valley to Errázuriz. Sure, this was because four of my ten favorite wines from the trip were made by Errázuriz. But the wine was just part of the winery tour - their history, their design, their food, and their staff made it a success. We started with a four-course meal on the patio outside the main building, which includes their bottle storage, blending, facility, and some cellar space. The food was typically phenomenal and each course was paired with a new wine. What made the lunch memorable,
though, was the view. From our seats we could see the vineyard, which stopped only a few feet away from our table. The view was spotted with palm trees and the slopes of the vineyard alternated between grapes and Haas avocados. The meal was only the start - when we finished our lunch, our guide René lead us down the sloping ramp into their old wine cellars. Tradition practically oozed from the walls; the Errázuriz family has produced ton of wine over the last 140 years, not to mention multiple Chilean presidents. Things got really cool when we moved on to their new, state of the art cellar, which really belongs in Architecture Digest. A stunning glass, steel and stone building surrounded by a moat that served to cool the interior, it is a purposedriven work of art. Being a winery, the tour really reached its peak when we sat at the large bar in the main house and tasted Errázuriz's wine with René. Lori and I had hit it off with René and before long he was breaking out some of their Icon wines: Don Maximiano Founder's Reserve 2006 and Seña 2007, the former a 94 point wine according to Robert Parker, the latter a 96 point wine. I'm not an expert on scoring wines, but there's no doubt in my mind that these two are simply brilliant, among the best I have ever tasted. To cap our visit off, Rene gave Lori and I a bottle of their Estate Sauvignon Blanc and a couple of glasses for us to enjoy from the top of the vineyard with a view of Aconcagua Valley. It's hard to imagine a more perfect visit to a winery anywhere in the world. While the service we received from our guide at Errázuriz was phenomenal, one thing that impressed us throughout the trip was the quality of service offered by staff at restaurants, hotels, and wineries. One night at Termas de Jahuel, a hotel with a hot spring and spa in Aconcagua Valley, we were watching the sunset on a secluded patio when I turned to Lori and said, "The only thing that could make this sunset better is if we had Pisco Sours." An instant later one of the hotel staff came upon us and asked if we'd like Pisco Sours while we watched the sunset! The timing was almost as good as the
cocktails, which, incidentally, are a musthave while in Chile. Great hotels were a theme throughout the trip. One of our favorites was Hotel Casa Real, which is located on the grounds of Viña Santa Rita in the Maipo Valley. It only has sixteen rooms and has the feel of an intimate bed and breakfast, despite the fact that it's a massive mansion dating from the 19th century. The grounds have a regal quality to them and the food was some of the best that we ate on the trip. Toss in a stately game room with a giant billiards table and Hotel Casa Real succeeded in making me happy. Our other favorite hotel was The Aubreyin Santiago. Located in the popular Bellavista neighborhood, The Aubrey is a new hotel at the foot of Cerro San Cristóbal Hill, adjacent to the entrance to the park's funicular. This place has tremendous character - each room is different - and a remarkably helpful staff. Our room was on the top floor of the hotel, with a great view of The Aubrey's sleek and sexy swimming pool. Bellavista is my kind of neighborhood. It's young, hip, and casual, with scores of great restaurants and bars. After dropping our stuff off at The Aubrey, we went to eat lunch at a very authentic Chilean restaurant, Galindo. The food was memorable, though I had a bit of language miscommunication: I'd thought I was ordering a Pernil sandwich, but ended up with a regular order of Pernil, which was a huge order of roasted pork leg. Fortunately, the pork was delicious and I had no reason to complain. Another food I fell in love with at Galindo was Puré Picante, which are basically spicy mashed potatoes. We had them in a lot of restaurants around Chile, but the Puré Picante at Galindo was the best we found in Chile. When we arrived in the early afternoon, many dive bars around Bellavista had set out tables and chairs on the sidewalk. While there were already plenty of people enjoying a few beers on a sunny Saturday afternoon, by Saturday night the whole neighborhood was jumping. Since it was our last night in Chile, Lori and
I did some bar hopping, visited an art gallery, and made friends with a stray puppy or two. The raucous nightlife of Santiago moved at a much faster pace than the stops in wineries and luxurious hotels that we'd made over the last week and before we knew it, we were ready to head back to The Aubrey and call it a night... and a trip. The Huffington Post, Mar 14
CHILE GOVERNMENT RUSHES FUEL PRICE SUBSIDY BILL TO CONGRESS Chile's government rushed to Congress the fuel price subsidy bill to protect consumers from the increases in fuel prices seen in the past weeks. Since Chile imports the vast majority of the fuel it consumes and since transportation and fuel prices have a heavy weighting on the consumer price index, international market volatility can shake the domestic economy. While the consumer price index rose a mild 0.2% on the month in February, analysts see a sharp 0.8% increase in March on climbing fuel and transportation prices. Crude oil has been rising in the past weeks on concerns that Middle East unrest is spreading to major oil-producing states. Oil markets focused on reports of increasing violence in Libya, where opposition forces and those loyal to Moammar Gadhafi continued to fight for control of the country. But there is also concern about its potential spread to wealthier countries that produce a larger portion of the world's crude supplies. "The bill aims to speed up a protection mechanism for consumers and small and medium-sized companies from the significant increase in fuel prices than we have seen recently," President Sebastián Piñera told reporters at the presidential palace on his first day back following a visit to Middle East and Europe.
Pi単era called on the parliament to approve the proposal "as quickly as possible" so the new subsidy mechanism will be implemented and operating as soon as next week. For his part, Mining and Energy Minister Laurence Golborne said the bill will speed up the implementation of the mechanism, known by Spanish acronym Sipco, to buffer local fuel prices from international market variations. Sipco has a variable fuel-tax component that will reduce taxes if prices climb above a certain point. "We need Congress to approve the Sipco now, so as to put it into use next week," Golborne told. Wall Street Journal, Mar 14
CHILE 4Q GDP +5.8% ON YR; 2010 GDP +5.2% -CENTRAL BANK The Chilean economy quickly rebounded from a recession in 2009 and a devastating February 2010 earthquake, with gross domestic product gaining 5.2% in 2010 versus the previous year, the Central Bank reported. Domestic demand, which fueled economic growth last year, grew 16.4% "thanks to the dynamism in private consumption and investment in machinery and equipment," the bank said. Dow Jones Newswire, Mar 18
THE UNITED STATES AND CHILE: TRADE AND INVESTMENT Bureau of Western Hemisphere Affairs Bilateral trade has more than doubled since the U.S.-Chile Free Trade Agreement (FTA) entered into force in 2004, with two-way goods trade totaling US$17.9 billion in 2010 and the United States running a surplus of US$3.9 billion. The United States is Chile's
second largest goods trading partner overall, and the largest foreign investor in Chile, accounting for 24 percent of foreign direct investment in Chile from 1974-2010, according to the Chilean Foreign Investment Committee. During 2011, the United States and Chile will eliminate tariffs on 134 products, further promoting trade between our two countries. The United States and Chile share a vision that promoting innovation is critical to capturing the opportunities of the 21st century economy. In January 2011, the U.S. Department of Commerce organized a visit to Chile of leading venture capital funds, the only mission of its kind to South America. Protecting intellectual property rights is a vital element supporting this innovation agenda, and the Office of the U.S. Trade Representative and the Government of Chile have a dialogue focused on how Chile is implementing the intellectual property provisions of our Free Trade Agreement. As part of that implementation process, Chile is completing ratification procedures to bring several international intellectual property agreements into force. In March, the U.S. Department of C o m m e r c e ' s I n t e r n a t i o n a l Tr a d e Administration and the Chilean Export Promotion Bureau (ProChile) signed a memorandum of intent to promote and encourage bilateral trade by exchanging information and coordinating best practices, trade missions, market research, business mentoring, and trade capacity building. This month, the U.S. Department of Agriculture and the Chilean Ministry of Agriculture reached an agreement to permit the importation of certain cuts of fresh U.S. beef into Chile. In addition, the U.S. Department of Agriculture published proposed rules that, if adopted, will permit a "systems approach" to ensure that Chilean figs, pomegranates, and kiwis can enter the United States free of harmful pests. Also this month, the U.S. Trade and
Development Agency (USTDA) is facilitating a visit to the United States by representatives of the Chilean private and public sectors to review U.S. technology and experience in water desalinization projects. USTDA will also support a feasibility study grant for the CochranePuerto Montt Airspace and Aerodrome Modernization Plan. The United States and Chile cooperate closely in a number of regional and global fora. On the global level, we are actively involved in the World Trade Organization, working together to achieve an ambitious and balanced conclusion to the Doha Round negotiations. We are also coordinating efforts in the Organization for Economic Cooperation and Development (OECD), which Chile joined in 2010 with strong U.S. support. Chile is the first South American nation to join the OECD. Regionally, along with seven other nations, the United States and Chile are actively engaged in negotiations of the Trans-Pacific Partnership (TPP), a 21st century highstandard trade agreement embracing dynamic economies across the Asia Pacific region. Together, we are looking to expand the benefits of free trade to more citizens of the Western Hemisphere through the Partnership to Prosperity. We are also working cooperatively to strengthen and deepen East-West economic integration through the Asia-Pacific Economic Cooperation (APEC) forum, which the United States is hosting in 2011. EIN Preswire, Mar 20
OBAMA HAS BUSY SCHEDULE DURING CHILE STOP Barack Obama became the fifth U.S. president to visit this far-flung South American nation but the first to use it as a platform for a major policy speech. Coinciding with the 50th anniversary of John F. Kennedy's Alliance for Progress speech - which outlined a decade-long plan
for Latin America centered on economic cooperation - Obama's talk is eagerly anticipated here. In an interview with Chile's El Mercurio newspaper, Obama said he would use the opportunity to highlight the need for a "partnership of equals" and focus on areas where the U.S. and Latin America have common interests, including economic growth, energy, security and human rights. Obama said he chose Chile as a platform because its "successful transition to democracy and sustained economic growth make it a model for the region and the world." The visit comes as Chile has spent the last year under the international spotlight. In February, 2010 - just days before Piñera took office - the country was rattled by an 8.8magnitude earthquake and ensuing tsunami that killed more than 700 and left a halfmillion homeless. In October, more than a billion people tuned in as the government rescued 33 miners who had been trapped underground for more than two months. "We learned something about the spirit of the Chilean people," Obama told El Mercurio, referring to those two events. "And we also learned something about our own humanity." Chile is the eighth-largest economy in Latin America after Venezuela and Peru. But with an annual growth rate of 5.2 percent last year and its embrace of free-market capitalism, the country is often touted as an economic model for the region. Miami Herald, Mar 21
OBAMA LAUDS CHILE'S SUCCESS U.S. President Barack Obama was full of praise for Chile during a one-day visit to the Andean nation, while Chilean counterpart Sebastián Piñera urged Washington to forge a new, non-paternalistic alliance with Latin America.
"Chile is one of the great success stories of this region. It's built a robust democracy. It's been one of the most open and fastest growing economies in the world," Obama said during a joint press conference with Piñera at La Moneda palace. For his part, Piñera asked for an alliance of equals, in which all have obligations and responsibilities, "not simply a mutualaidalliance... but one of collaboration between Latin America and the United States, which share the same values, principles and vision." The Chilean president used the occasion to ask that this new alliance also "open the way to genuine free trade." In that regard he asked Obama for his country to expand the current free-trade pact with Chile, and that it ratify the accords entered into with Colombia and Panama. Obama expressed his readiness to "fully implement" the U.S.-Chile trade pact. EFE, Mar 22
CODELCO SAYS IT'S OPTIMISTIC ON 2011 COPPER PRICE Codelco, the world's largest copper producer, is optimistic about the metal's price this year as Japan's earthquake reconstruction boosts demand prospects, citing Chairman Gerardo Jofré. Codelco, which is owned by the Chilean state, will contribute about US$6 billion to government coffers from last year's earnings after prices surged. Bloomberg, Mar 24
CHILE'S LARRAIN SEES INFLATION EXPECTATIONS EASING Finance Minister Felipe Larraín said he aimed to take markets by surprise last week with a pledge to reduce the government's expenditures by about US$800 million, to "break the cycle" before markets lost faith in authorities' ability
to contain price pressures. "After our package, we have already some signs that inflation expectations are declining," Larraín told Reuters in an interview on the sidelines of meetings by Western Hemisphere finance officials. "The signs are a decline in the inflation expectation that is implicit in the pricing of nominal and real interest rates," he said. The fiscal package is designed to ease pressure on the central bank, which also surprised markets with an aggressive 50-point hike last week, and tame increases in consumer prices and the strong peso. Larraín said the spending cuts were significant, the equivalent of the United States chopping US$60 billion from its budget. As the world's top copper exporter, Chile benefits from ravenous demand for the metal from China, its top trade partner. But it also imports virtually all of its oil, with potential impact on underlying inflation that Larraín said was his "biggest worry." Chile's latest inflation numbers were relatively tame, but Larraín has repeatedly flagged oil prices as a risk to the price outlook. Many Latin American countries are grappling with inflationary pressures, heavy capital inflows and rising currencies as their economies heat up after the global economic crisis. Those challenges weighed heavily on finance ministers and other policy makers who met in Calgary, Alberta, on Saturday to discuss the best policy response. Larraín generally agreed with Bank of Canada Governor Mark Carney, who said the commodity boom could last for decades because global growth is tilted toward highgrowth emerging economies like China and India. Reuters, Mar 26
CHILE EXPECTS MORE 'HUASO' BOND SALES IN COMING M O N T H S , L A R R A I N S AY S
linked notes at a yield of 4 percent in May. Banco de Crédito del Perú sold bonds in 2009.
Chile's government expects foreign entities to sell bonds in the South American country in the coming months after it relaxed rules in a bid to deepen local capital markets, Finance Minister Felipe Larraín said.
"I would not be surprised to see a lot of B r a z i l i a n c o m p a n i e s i s s u i n g bonds in Chile," Larraín said.
will be prepared to be a leading e n e r g y s u p p l i e r a n d o p e r a t o r. Mammoth Energy's goal is to become an important partner as the w o r l d ' s e n e rg y p a r a d i g m b e g i n s t o change throughout the next decade a nd be yond.
B l o o m b e rg , M a r 2 6
PR-U SA, Mar 14
The Inter-American Development Bank and private companies are among entities to show interest in so-called huaso bonds, peso-denominated notes issued by foreigners, Larraín said in an interview at the IDB's annual meeting in Calgary. "Over the next couple of months we will probably see some" issuances, he said. "We are seeing a lot of interest. The IDB is one example, but there is a lot of examples of private companies." The administration of President Sebastian Piñera wants to make Chile a financial hub in Latin America. Authorities are expanding the possible universe of foreign issuers to states, companies from emerging markets and multilateral organizations, Larraín told. Under the changes, entities from countries with at least three sovereign credit ratings will be able to sell bonds denominated in Chilean pesos. Previously, authorization was limited to entities that traded in exchanges recognized by the local credit rating regulator. Huaso is the Chilean term for cowboy. Only three peso-denominated bonds, totaling less than US$500 million, have been issued by foreigners since they were allowed to do so in 2006, Larraín said. The most recent was América Móvil SAB, Latin America's largest wireless phone operator, which sold US$198 million of 25-year inflation-
ENTERPRISES MAMMOTH ENERGY GROUP TO E N G A G E I N V E S T M E N T I N TO C H IL EA N LITH IU M Mammoth Energy Group Inc., a lithium and alternative energy m i n i n g c o m p a n y, a n n o u n c e d t o d a y that it is actively seeking investment and public relations companies for the financing for its lithium concessions in Chile. The company is in final stages of negotiations and intends to announce acquisitions of its Chilean concessions by the end of the first quarter with quick plans to up list to th e O TC -B B ma rke t. Mammoth Energy Group has signed a Letter of Intent with Salt Gold Inter Chile Limitada, whose concessions are located in the Salar de Maricunga. The company expects its entire lithium package once complete will total acreage of approximately 12,500 hectares or c lo s e to 31,000 a c re s . About Mammoth Energy Group Inc. Mammoth Energy Group Inc. is focused on acquiring, developing and operating strategic mining energy reserves in locations throughout the world. With an ever changing shift to alternative energy a n d f u e l s M a m m o t h E n e rg y G r o u p
S A N TA N D E R C H I L E W I L L INVEST US$380 MILLION Banco Santander Chile plans to invest US$380 million through 2013 to open at least 30 branches, Chief Executive Officer Claudio Melandri told. About 42 percent will be invested this ye a r. Bloom be rg, Mar 21
G O L D C O R P P L A N S TO REFOCUS ON ORGANIC G R O W TH Goldcorp, Canada's No.2 gold m i n e r, p l a n s t o s l o w d o w n t h e tempo on deal-making and refocus o n d e v e l o p i n g i t s l a rg e p i p e l i n e o f projects in the Americas, its CEO s a id. "M&A is not a high priority for us - focusing on delivering these new p r o j e c t s i s o u r p r i o r i t y n o w, " Goldcorp Chief Executive Chuck Jeannes said at the Reuters Global Mining & Steel Summit in Toronto. Goldcorp has pursued aggressive M&A-driven growth recently. It was involved in about half-dozen deals la s t ye a r a lone . L a s t F e b r u a r y, a m o n g o t h e r acquisitions, Goldcorp bought a 70 percent interest in the El Morro
copper-gold project in north-central Chile for about US$513 million, outmaneuvering Barrick Gold, which also tried to buy the asset. Jeannes said the company has just received approval of its environmental impact assessment at El Morro and continues to push forward with the project. He said he expects the company's updated feasibility study on Cerro Negro to be completed by the end of March and released in early April. The company, which has more than doubled its gold output since 2005, expects to produce between US$2.65 million and US$2.75 m i l l i o n o u n c e s t h i s y e a r. I t s e e s production climbing to US$4 mill i o n o u n c e s b y 2 0 1 5 . Reu t e rs, M a r 2 3
The items contained in this newsletter are extracts from articles and reports published in the international press.